Hello, I need help with this assignment. Can it be completed by 2:00pm PST.

My chose company is Apple, Inc.

Assignment: Application - Stock Valuation As a manager, it is important to understand how decisions can be analyzed in terms of alternative courses of action and their likely impact on a firm's value. Thus, it is necessary to know how stock prices can be estimated before attempting to measure how a particular decision might affect a firm's market value. To prepare for this Assignment, choose a publicly-traded company, and then estimate your company's common stock price, using one of the valuation models presented in the assigned readings or outside readings. (If you want to analyze a dividend paying company, you can find a robust list at http://www.dividenddetective.com/big_dividend_list.htm.) Defend your choice of model, and explain why it is appropriate to use for your company's stock. Be sure to explain how you arrived at any assumptions regarding values used in the model. Determine whether your company appears to be correctly valued, overvalued, or undervalued based on your company's stock current price and model result. Check Yahoo Finance for current stock prices. Finally, explain why your company's stock appears to be over-, under-, or correctly valued. Exon Mobil Exxon Mobil is of the leading company involved in business of energy production. Company's business include exploration production of crude oil as well as natural gas, company's business also involves manufacturing of petroleum products , In addition to those company also transports and sell crude oil, natural gas and petroleum products. Exxon Mobil has market cap of $ 345 billion; it has net sales of $ 373.2 billion and net profit of $ 28.4 billion. Exxon Mobil Amount of net debt as well as net debt to capital has increased for Exxon Mobil, Net debt to capital ratio of Exxon Mobil has increased from around 2% in 2012 to around 12% in 2014. Company might be looking to maintain target debt to capital ratio slightly below industrial average of 18%. Exxon Mobil Cost of debt 2.85% Tax Rate 35% After tax cost of debt 1.85% Beta of stock Risk free rate Rf 1.05 2.27% Market rate of return Rm 9% Cost of equity Ke 9.73% Capital Debt Equity WACC k YTM on bond Assumption Cost of debt * (1 - tax rate) 10 year treasury yield Assuming average return on S&P 500 Rf + *(Rm Rf) After tax cost Weight 1.85% 16.10% 9.73% 83.90% Weighted Average Cost 0.30% 8.16% 8.45752750 % Dividend payment D0 Pay-out ratio Retention Ratio b Return on equity 2.7 33.20% Growth Rate g 66.80% 18.67% 12.471560 % Stock Price -75.65 Current Price 82.87 1 - pay-out ratio b*ROE $ D0*(1+g)/(K-g) $ Terminal growth 2.00% Assuming it to be long term gdp growth of world Dividends Year PVIF = (1+Ke)^year D0 0 2.7 1 D1 1 3.03673212 0.922019912 2.80 D2 2 3.415459988 0.850120719 2.90 D3 3 3.84142113 0.783828231 3.01 D4 4 4.320506271 0.722705237 3.12 D5 5 4.859340803 0.666348619 3.24 D6 6 5.465376407 0.614386695 3.36 D7 7 6.146994105 0.566476767 3.48 D8 8 6.913620163 0.522302859 3.61 1/ Present Value $ 2.70 $ $ $ $ $ $ $ $ $ D9 9 7.77585645 0.481573636 3.74 $ D10 10 8.745627052 0.444020482 3.88 $ Terminal Value 10 138.1417205 0.444020482 61.34 $ Present Value of all cash flows 97.19 $ Current Market Price 82.87 Since currently Exxon Mobil has high sustainable growth rate it is assumed that dividend will grow by sustainable growth rate for next 10 years and then will stabilize at growth rate of 2% Exxon- Mobil has been one the favorite stock on the Wall Street, company once had highest market capitalization in entire world, presently stock of Exxon Mobil is undervalued, company has high growth rate and has potential of providing high returns to investors. As the value of company's stock is poised to grow Exxon Mobil's M&A strategy should be of potential acquirer. References Exxon Mobil Corporation (Growth, Profitability, and Financial Ratios for (XOM) from Morningstar.com) Annual Report. (n.d.). Retrieved July 8, 2015. Exxon Mobil Corporation 2014 Summary Annual Report. (n.d.). Retrieved July 8, 2015